Kansas City Royals Baseball Corp. v. Major League Baseball Players Ass'n

532 F.2d 615
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 9, 1976
DocketNo. 76-1115
StatusPublished
Cited by12 cases

This text of 532 F.2d 615 (Kansas City Royals Baseball Corp. v. Major League Baseball Players Ass'n) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kansas City Royals Baseball Corp. v. Major League Baseball Players Ass'n, 532 F.2d 615 (8th Cir. 1976).

Opinions

HEANEY, Circuit Judge.

The owners of the twenty-four Major League Baseball Clubs seek reversal of a judgment of the District Court for the Western District of Missouri. The court refused to set aside and ordered enforced an arbitration panel’s award rendered in favor of the Major League Baseball Players Association. The arbitration panel was established pursuant to a collective bargaining agreement between the Club Owners and the Players Association. The award relieved pitcher Andy Messersmith of any contractual obligation to the Los Angeles Dodgers, and pitcher Dave McNally of any similar obligation to the Montreal Expos. It directed the Dodgers and Expos to remove Messersmith and McNally, respectively, from their reserve or disqualified lists. It ordered the American and National Leagues to inform and instruct their member clubs that the provisions of Major League Rule 4-A (reserve list rule) and Rule 3(g) (no-tampering rule) do not inhibit, prohibit or prevent such clubs from negotiating or dealing with Messersmith and McNally with respect to employment.

We hold that the arbitration panel had jurisdiction to resolve the dispute, that its award drew its essence from the collective bargaining agreement, and that the relief fashioned by the District Court was appropriate. Accordingly, we affirm the judgment of the District Court.

On February 25, 1973, the Club Owners and the Players Association entered into a [618]*618collective bargaining agreement to be in effect from January 1, 1973 to December 31, 1975.

Article X of the agreement set forth a comprehensive procedure for the resolution of certain grievances. “Grievance” was defined as “a complaint which involves the interpretation of, or compliance with, the provision of any agreement between the Association and the Clubs or any of them, or any agreement between a Player and a Club * * *.” Certain disputes not pertinent here were excepted.1 A player having a grievance was first required to present the matter to his club. Either the player or Players Association could then appeal the matter to the clubs’ Player Relations Committee and to the appropriate League President. Grievances not satisfactorily resolved by these procedures could be submitted to a tripartite panel for binding arbitration. The panel was comprised of one member to be appointed by the Club Owners, one member to be appointed by the Players Association, and an impartial chairman to be chosen jointly by the other two members. The agreement defined the arbitrators’ authority as follows:

With regard to the arbitration of Grievances, the Arbitration Panel shall have jurisdiction and authority only to interpret, apply or determine compliance with the provisions of agreements between the Association and the Clubs or any of them, and agreements between individual Players and Clubs. The Arbitration Panel shall not have jurisdiction or authority to add to, detract from, or alter in any way the provisions of such agreements.

On October 7, 1975, the Players Association filed a grievance on behalf of Andy Messersmith. The grievance alleged that Messersmith played for the Los Angeles Dodgers in 1975 under a renewed 1974 contract, that the renewal year was completed on September 28, 1975, that Messersmith thus became a free agent on that date, and that the Club Owners had denied him his right to deal with other teams for his services in 1976. The Players Association asked that the Club Owners be ordered to treat Messersmith as a free agent and to compensate him for any financial detriment he might incur due to their delay in doing so.

On October 9, 1975, the Players Association filed a companion grievance on behalf of Dave McNally, alleging similar circumstances.2

The Club Owners responded to both grievances on October 24, 1975. Their primary contention was that the claims raised fell outside the scope of the agreed upon grievance procedures and were, therefore, not subject to the jurisdiction of the arbitration panel. They argued that Article XV of the 1973 agreement excluded disputes concerning the “core” or “heart” of the reserve system from the grievance procedures set forth in Article X. Article XV provided:

Except as adjusted or modified hereby, this Agreement does not deal with the reserve system. The Parties have differing views as to the legality and as to the merits of such system as presently consti[619]*619tuted. This Agreement shall in no way prejudice the position or legal rights of the Parties or of any Player regarding the reserve system.
During the term of this Agreement neither of the Parties will resort to any form of concerted action with respect to the issue of the reserve system, and there shall be no obligation to negotiate with respect to the reserve system.

With respect to the merits of the dispute, the Club Owners argued that under the Uniform Player’s Contract, the Dodgers and the Expos had the right to renew Mes-ser smith’s and McNally’s contracts from year to year for a reasonable number of years. They alternatively argued that under the Major League Rules, the two clubs could obligate the pitchers to play for them and no other Major League Club, simply by placing their names on the clubs’ reserve lists.

The arbitration panel set the matter for hearing. Thereafter, on October 28, 1975, the Kansas City Royals Baseball Corporation commenced an action in the United States District Court for the Western District of Missouri seeking a declaratory judgment that the aforesaid grievances were non-arbitrable and an injunction prohibiting the Players Association from proceeding with arbitration. The remaining twenty-three Major League Clubs then joined the action as plaintiffs-intervenors. Subsequently, the Players Association filed a counterclaim, pursuant to § 301 of the Labor-Management Relations Act, 29 U.S.C. § 185, seeking to compel the plaintiffs to arbitrate.

At a pretrial conference on November 6, 1975, the parties agreed to go forward with the scheduled arbitration. It was stipulated that the arbitration panel should initially determine its own jurisdiction, but that the question could later be presented to the District Court on the basis of the record compiled in the arbitration proceeding as well as any other relevant and material evidence which either side might wish to present.

In accordance with the stipulation, the Messersmith-McNally grievances were submitted to arbitration. Three days of hearings were held, at which voluminous evidence, both testimonial and documentary, was adduced. Four additional days of executive sessions then ensued. On December 23, 1975, the panel3 rendered its decision, holding that the grievances were within the scope of its jurisdiction and that Messers-mith and McNally were free agents. It directed that both parties be removed from the reserve or disqualified lists of their respective clubs, and that the leagues promptly notify their member clubs that they may negotiate with Messersmith and McNally with respect to future employment. The panel denied the Players Association’s prayer for damages as premature, but retained jurisdiction as to that and other questions pertaining to the appropriate nature and extent of relief.

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532 F.2d 615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-royals-baseball-corp-v-major-league-baseball-players-assn-ca8-1976.